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An employee resigns from service after completion of 21 years 1 month. During his service he was absent continuously for 01 year 07 months due to his personal reasons and no salary paid for this period. In this case how we can calculate Gratuity.
Date of joining : 09.06.1997
Date of resignation : 06.07.2018
Date of relieving : 11.07.2018
Absented himself without leave (without pay): 24.11.2016 to 11.07.2018
Total years of service = 09.06.2018 – 23.11.2016 =19 Year minus - continuous absent period
Is it correct paying gratuity for 19 years?
Sir, your immediate advice is very helpful.
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I think absence of more than a year without pay may be considered as service break and the period will count afresh from his rejoining the job. However, it depends on circumstances of the leave and how it was sanctioned.
Dear Srivastava,
Here clarity on how his leave was accounted for one year and odd period is needed.
What has the Management done for his case, because he was not paid any remuneration/salary for such period?
His gratuity to be paid for total period if he was considered to be on paid leave.
But you should have considered his case a new joinee after that long leave and settled his amount then.
Dear colleague,
During the total service period of 21 years and one month, the concerned employee was unavailable for work due to absence, for a consecutive period of one year and seven months, therefore, your treating him eligible for gratuity for 19 years is correct.
Vinayak Nagarkar
Dear Mr. Srivastava,
Continuity of service of an employee is calculated keeping in view the provision of Section 2A of the Payment of Gratuity Act, 1972. According to this section, an employee renders uninterrupted service even if his service is interrupted by sickness, accident, absence from duty with or without leave, lay-off, strike, or lock-out or cessation of work not due to the fault of the employee.
However, if in respect of his unauthorized absence, an order has been passed by the management, in accordance with the Standing Orders, rules or regulations governing the employee of the establishment, treating his absence as break in service, then the period covered under such order shall not be considered towards his continuous service and thus, shall be liable to be deducted from his total service period.
It means, that even though your employee was on unauthorized leave and even though you have not paid him any salary, his service would be counted towards continuous service unless you have passed an order whereby his unauthorized absence was treated as break in service.
Best wishes,
I think the contention of Jpratap sir is quite reasonable . If mgmt has not taken any action against the absentee in writing or passed any order then the period of absence to be considered or counted as continuous service for calculation of gratuity.
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